The Dividend Puzzle; An Enigma 50 Years on
14 Pages Posted: 23 Sep 2011 Last revised: 27 Aug 2012
Date Written: September 21, 2011
This paper investigates over fifty years of the major dividend policy themes, from Litners 1956 theory that earnings drive dividends through to the great financial crises impacting on international and Australian companies dividend policies. The question of why companies pay dividends seems to have a fluid, interwoven, contradictory and everchanging nature. Black’s conclusion in 1976, that when it comes to dividends there is no clear cut answer, only a puzzle, is as relevant today as it was then.
Keywords: Dividend, Yield, Buyback, Repurchase, America, Australia
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